Organic vegetable growers say they are struggling to keep up with surging demand since Tesco started selling organic alongside conventional produce.

Sales have soared since Tesco integrated its organic and conventional produce fixtures, putting pressure on supply. If other retailers followed suit the situation could get worse, warned growers.

"Things are tight in organic anyway," said Jason Burgess, MD of Rustler and RB Organic. "If everyone suddenly integrated their organic and conventional produce and it had the same effect as Tesco experienced, it could cause short-term problems."

Market data from TNS shows volume sales of organic produce were up 30% in the 12 weeks to mid- February, with Tesco leading the way. Tesco's market share in organic alliums (onions, garlic and leeks) and root vegetables rose from 28% to 34% over the period.

The market may already be heading for a supply squeeze, as Sainsbury's has just remerchandised its organic fruit and vegetables. The retailer has integrated its So Organic range with the ­conventional offer in the hope of boosting sales.

The supply situation is so serious the Soil Association is running seminars in the West Country to recruit organic growers.

"Growers are worried about converting land when retail prices for organic are dropping," said food and farming director Helen Browning.

Burgess said: "Other retailers have to consider whether it is right to make similar changes to their fixture. We are trying to encourage our suppliers to convert land, and produce different crops to meet the growing demand."

There was an 18-month lead time on expanding organic production, while organic conversion took a full three years, he added.

Topics